UPDATE 1-Mexican government announces 13% minimum wage increase

The government is also sending a bill to Congress to incrementally trim the working week to 40 hours per week from 48 hours by 2030, Bolanos said during the president's morning press conference. ($1 = 18.2453 Mexican pesos)

Mexico's government said on Wednesday it will raise the minimum wage by 13% in 2026, the latest in a series of public policies from two consecutive leftist administrations aimed at helping poor workers.

The minimum wage will rise to 315.04 pesos ($17.27) per day, part of an agreement between labor, business and the government leaders, Labor Minister Marath Bolanos said. The 2026 minimum wage increase will bring the accumulated rise in salaries to about 150% since 2018 in Latin America's second-largest economy.

Mexican President Claudia Sheinbaum has claimed that the wage hikes over the last seven years have reduced poverty significantly. The government is also sending a bill to Congress to incrementally trim the working week to 40 hours per week from 48 hours by 2030, Bolanos said during the president's morning press conference. ($1 = 18.2453 Mexican pesos)